How can bookkeepers identify and prevent fraud in small businesses in Dubai?
Small businesses are more prone to fraud, as they have fewer resources, less experienced, and fresh ideas. The innovative and young minds coming up with all the zeal and enthusiasm are required to keep keen knowledge of what works beneath and at the upper layer. It is quite often possible that the business owners are engaged in a thousand different works, and pulling their attention out from any one of them coufld be problematic. To tackle all such situations, the services of a bookkeeper in Dubai jumps into the picture.
A bookkeeper in Dubai, UAE is a professional who takes care of all the records of the transactions and expenses made on the name of the business and all the important receipts and documents that need to be preserved for any future references.
In the contemporary scenario, the cases of fraud have increased. The target sources of the fraudsters are generally small businesses and start-ups. Established companies and start-ups have enough resources and protection policies that it is not easy to fraud them, and therefore, the target becomes small businesses.
There could be a chance to miss out mistakes
A professional official is able to handle all bookkeeping related practices and is able to manage the financial well being of an organization by systematically framing all the data related to finance and other relevant terms.
But there occurs at some point in time some kinds of discrepancies and mistakes that are not healthy for the well being (economic as well as social) of the firm. These are some common bookkeeping mistakes. It is natural for a human to make mistakes, and human learns from the mistakes he/she made in the past. So are there some common bookkeeping mistakes that can be made in any organization without realizing the potential harm and threats related to them.
- To avoid fraud in the business, there are certain practices that the bookkeepers in Dubai, UAE need to have a check on. These practices involve looking at monthly bank statements, cleared checks. Checking for any additional undesirable transaction helps is reviewing the safety of all the banking procedures made in the past. Any unknown withdrawal of any amount must be checked; though the bank notifies the account holder about any debiting activity, it is important to not let go of these notifications without paying attention to them.
- Looking at the payroll report and ensuring the right amount of wages that are paid to the employees. Any discrepancy in the payroll in Dubai, UAE, if left unnoticed, may turn out to become a big issue in funding other necessary activities. It is also important to not provide the authority to sign on checks and other important documents to other ordinary employees in the company. Generally, even the bookkeeper has no authority to sign pay-checks on his own or stamp any other important documents. It is under the founder or some high positioned official to make any necessary papers or checks signed. This practice avoids any frauds to take place.
- Being aware of any scam letters and emails that offer any kind of services that are not needed or can be done by any other official or bookkeeper itself. These scam emails are fraud invitations and can lead to frauds if avoided. Checking and reporting such mails is the best option.
- Cyber crime is one of the hottest topics being discussed in the sector of Information Technology. There have been many cases reporting cyber crime. People often get trapped in the web of cyber crime by entering sensitive information to attractive, but fraud offers and ends up losing huge amounts. Most cases are related to money being debited from a person’s bank account without him/her doing the same or getting notified of it.
- It is highly advisable that bookkeeper doesn’t surf on any such websites that are not secured for entering any personal and sensitive information. Hackers use this information to hack personal social media accounts such as WhatsApp. Entering bank account details on any such websites or applications that don’t have any safe encryption policies.
- Though online banking is the need of the hour as it is the fastest method of transferring funds but even these platforms that enable online banking must be used with proper attention and care. Fraudsters are very active and may take advantage of any silly mistake made by the user.
- False invoicing is another way in which fraud can be made. Invoices from service providers or goods provider must be checked and verified by the bookkeeper in Abu Dhabi, UAE. It could be a costly mistake to let the invoices go unchecked. Dealers and proprietors can make false invoices if they notice the invoices are paid without being verified. Therefore, checking the invoices and crosschecking the goods and services received against them is important to avoid any frauds, especially in small businesses.
- In addition to these, any other expenses made by any employee on the name of the company must be checked. This mistake can go unnoticed and may result in unnecessary losses. Employees using the services of the company must not misuse the facilities.
Bookkeepers in Abu Dhabi, UAE thus need to take care of all these practices so that no fraud can cause any harm to the harmonious working of the company. Bookkeepers themselves must be honest with the client and must not indulge in any such activities leading to fraud.
Results of preventing frauds
There is no businessman or entrepreneur who doesn’t wish to attain higher business performances in the future. For this to be possible, analyzation of different aspects of the working scenario is important. If stuck with some detailed financial issues and errands, the goal to achieve high performances is lost. Thus, a professional bookkeeper in Dubai, UAE here helps in tackling all the issues regarding fraud, and proper attention could be given to the tasks that boost the performance in the arena of business.
Frauds can be identified easily
Bookkeepers are well experienced and smart enough to identify fraud schemes and offers. Though, there are some instances when fraud cannot be easily identified. During such situations, the bookkeeper can discuss the matter with a fellow bookkeeper or the client or founder of the organization. Frauds today are generally made with the help of technology, and via the internet; therefore, it is very important to use the technology smartly and safely.
Services like online bank transfers and other e-commerce services must be used with the utmost care, and any sensitive information regarding the bank account or personal information must not be entered.
It is the bookkeeper’s duty to prevent all such acts of fraud and also guide the employees working in the company regarding any fraud schemes. This will help in enhancing the company’s performance and will ultimately produce better results.
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